Business Simulation Report: G Mobile's Strategy and Performance Review

This report provides a comprehensive analysis of G Mobile's performance within a business simulation, focusing on its strategic decisions and operational outcomes. The executive summary highlights key findings, followed by an introduction to the simulation's context. Part A delves into G Mobile's vision, values, mission, and strategy, alongside a detailed review of its progress over several years. The report includes a thorough competitor analysis using Porter's Five Forces, market share evaluation, and product/price analysis. Future plans and recommendations for G Mobile are also presented. Part B offers a professional development reflection, discussing identified events, relevant theories, industry practices, and their application within the simulation, culminating in actionable recommendations. The report concludes with a summary of key insights and findings, supported by comprehensive references.

Business
Simulation

Contents
Executive Summary.....................................................................................................................................3
INTRODUCTION...........................................................................................................................................4
PART A.......................................................................................................................................................4
Vision and strategy..................................................................................................................................4
Review of progress of all the years..........................................................................................................5
Performance Analysis............................................................................................................................10
Future plans and recommendations......................................................................................................11
INTRODUCTION.........................................................................................................................................12
PART B.......................................................................................................................................................12
Identified events....................................................................................................................................12
Review of theories.................................................................................................................................13
Review of industry practices..................................................................................................................14
Application of theories and practices....................................................................................................15
Discussion..............................................................................................................................................16
Recommendations.................................................................................................................................16
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................18

Executive Summary
Business Simulation is a helpful experience for those people who wish to get an
experience about how a business is run in a practical situation. It gives them the confidence to
face the real-life practical situations which can incur while doing business. This report contains
the various aspects related to it and covers all the necessary information which is required for
proper management in the long-run by the company’s managers in the future time period. Thus it
gives detailed information for the purpose of ensuring that the right techniques are applied to
gain advantage by maximizing the level of profits.

INTRODUCTION
Business simulation is mainly focused with business training so that all the individuals
who are performing tasks related to it can experience real situations which may take place when
they will be running an organisation. With the help of it, skills of employability and
entrepreneurship could be enhanced as it guides students to work under real business situations
which help them to be prepared to deal with all the negative situations. Main purpose of it is to
make sure that all the individuals who are playing the simulation game are able to deal with all
the challenges which could be experienced by them while operating their own business.
Professional development is also one of the main elements which are focused for the purpose of
developing qualities of students to reach their career goals. While planning to develop the skills
to run a business it is very important for all the individuals to make sure that they pay attention
towards professional development (Alstete and Beutell, 2019).
Present report is based upon G Mobile which is a smart phone manufacturer established
in The Netherlands and operating business in different countries such as US, UK, China, France,
Australia, Brazil, Belgium etc. This whole report is segregated in two parts first one is based
upon analysis of business. It covers various points such as vision and strategy of company,
review of progress of all the year’s performance, future plans and recommendations for the entity
for upcoming five years. Second part is based upon professional development reflection which
covers the events which were experienced which running the business, industry practices and
application of the theories.
PART A
Vision and strategy
G Mobiles is one of the smart phones manufacturers which is mainly established in The
Netherlands. Currently it is operating business in various countries such as Brazil, Belgium,
France, China, India, USA, UK, Australia etc. The entity is highly focused with its mission and
strategy as it is willing to grow the business in upcoming years. The key elements which are
focused while formulating strategy are described below:
Vision: The vision of G Mobile is to shape the future of technology so that it can become
the first choice of customers by selling them smartphones in low as well as affordable prices.
Values: In order to sustain in the market, it is very important for all the companies to
follow specific values so that customer engagement and loyalty could be acquired. The main
value which is focused by the organisation is loyalty of staff members. The top management
make sure that they provide appropriate compensation to all the employees so that they cold be
retained for long run in future and contribute in growth in business. When the staff turnover will
be low then it will be easy to attract large number of customers by having highly experienced
staff (Arantes do Amaral and Hess, 2018).

Mission: G Mobile’s mission is to enhance the profits in upcoming five years by offering
highly innovative and technological devices to the customers. With the help of it revenues could
be increased and the profitability will be enhanced.
Human resource: All the business entities are required to pay attention towards human
resource as these are the main sources which are required to carry out all the operational
activities. G Mobiles is paying attention towards recruitment and selection of skilled individuals
so that they can contribute in the development of business. Apart from this, proper training and
development programs are also conducted by the enterprise for existing and new employees so
that they skills to perform their jobs could be enhanced.
Culture: It is essential for all the entities to make sure that they are following a culture
that creates positive working environment for staff. It can motivate them to perform all the jobs
with higher responsibility and dedication. G Mobile promotes creativity, equality and diversity at
workplace which helps the employees to work productively. Along with this, the company also
focuses upon formulation of such strategies which can help to meet expectations of all the
customers. For this purpose, some key elements that are focused by the company are flexible and
highly motivate environment for the staff. It helps to inspire them to work productively and
facilitate to reach mission and vision (Buchholz, Holst and Musshoff, 2016).
Review of progress of all the years
G Mobiles is a large company which is operating business in various countries. It is
essential for it to determine progress of it so that specific strategies to meet long term business
goals could be formulated. If it will not be able to form the decisions for upcoming period then it
will be very difficult for it to sustain in the market. In order to analyse progress of different years
two main elements are required to be focused these are analysis of competitor and results of
performance (Buil, Catalán and Martínez, 2018). There are various aspects which are analysed
under these two elements. Discussion of all of them is as follows:
Competitor analysis: It is very important for companies to conduct competitor analysis
as it guides to form specific policies for future so that higher competitive advantage could be
acquired. There are various elements of it which are discussed below for G Mobile:
Porter’s five forces: It is a strategic management tool which is used for the purpose of
analysing impact of different forces upon business. With the help of it, level of competition in
the industry could be analysed. In order to conduct competitor analysis, it is used by G Mobile.
All the elements of it are discussed below in context of the organisation:
 Competitive rivalry: All the entities which are operating under same industry are
considered as competitors for each other. G Mobiles is carrying out operational activities
in smart phone industry and there are various major players which are competitors of it.
These are I Tech, V Connect, Limit Less etc. It shows that the level of competitive rivalry

for the company in the sector is high as it is required to compete with different entities
(Gatti, Ulrich and Seele, 2019).
 Bargaining power of customers: All the people who are buying products from a
company are considered as buyers. While planning to attain growth it is very important
for the organisations to determine that level of bargaining power of customers is high or
low. As the number of companies which are operating business under smart phone
industry is very high so the customers have different options to buy from. If G Mobiles
will sale the products on high price then buyer may switch to another company. It
demonstrates that bargaining power of clients for the company is very high because of
high competition (Hernández-Lara and Serradell-López, 2018).
 Bargaining power of suppliers: External stakeholders who are delivering stock to the
companies for producing the final product are the suppliers. All the entities have goal of
buying raw material on lower price and for this purpose they are required to analyse the
number of suppliers in the industry. As the sector is very large so the number of them is
also very high that weakens their bargaining power. Therefore, the bargaining power of
suppliers for G Mobile will be very low. In case of, an external party will be selling stock
on higher price the company can find a new supplier for the material.
 Threat of new entrant: The smartphone industry is very large therefore the funding
which is required to enter in it is very high. Apart from this, most of the new entities are
launching smartphones with innovative concept which is a threat for the company. It
shows that the threat of new entrant for G Mobiles is moderate because there are barriers
as well as opportunities for new companies to enter in the market of smart phone
industry.
 Threat of substitutes: The products that could be used in place of available products that
are sold by an entity are the substitute for them. The main substitutes for smart phones
are video calling applications, innovative devices etc. The threat of all of them for the G
Mobile is low because smart phones could not be replaced by any other device
(Hernández-Lara, Perera-Lluna and Serradell-López, 2019).
Market share: The marketplace which is captured by an organisation is considered the
market share for it. The higher the number of customers the higher the market share will be. In
order to analyse the market share of G Mobile the customer focus of the company is analysed
from the analysis of simulation game. It shows that for year 2020 the market segment demand

was 384000 which was decreased in 2021 up to 276480. In 2022 the customer focus market
segment demand was same as 2021 which was 276480. In 2023 it was increased up to 304128
and remain constant for 2024, 2025, 2026 and 2027. For year 2025 an incline in the customer
focus market segment demand was recorded and it was increased up to 319334.4 for the year. It
was constant for year 2029. The market share analysed showed that the company is having very
high demand of smart phones on the basis of customer focus.
Product or price analysis: Companies are required to conduct analysis of product or
price as it helps to determine the market demand on the basis of price and quality of items that
are sold to customers. With the help of it, strategies for making changes in pricing and
modifications in product quality could be formulated (Ivanov, 2020). This analysis was also
conducted for G Mobiles and the bases for the same were price and quality elements in the
analysis section of business simulation. In year 2020 market demand on the basis of price for the
company was 1800000 which was decreased in 2021 up to 1377000. During the year 2020, total
segment demand for smart phones on the basis of product quality was 240000 for G Mobile and
it was declined in 2021 up to 172800. For 2022 demand on the basis of both the elements was
same as 2021. In year 2023 the market segment demand of smart phone for G Mobile was
increased up to 1514700 on the basis of price which was constant for 2024, 2025, 2026 and
2027. For 2023 the demand according to product quality was also enhanced up to 190080 and it
remained constant during 2024, 2025, 2026 and 2027. For year 2028 an increment in the demand
on the basis of price and quality was recorded which was 1590435 and 199584 respectively for
both of them. In 2029 the demand was same for both the bases. On the basis of price or product
quality analysis it could be analysed that the entity is having very high demand in the industry
but it is not able to meet it because of lower production.
Competitors: The companies which are selling same products to the customers with
same benefits are considered as competitors. It is very important for all the companies to analyse
the level of competition. G Mobile is carrying out operations under smart phone industry. The
major players in the sector are I Tech, V Connect, Limit Less etc. It is essential for the company
to make sure that it formulates effective strategies so that level of competitive advantage could
be enhanced (Levant, Coulmont and Sandu, 2016).
Competencies and capabilities: The USP (Unique Selling Points) are considered as
competencies and capabilities of an organisation and to sustain in the industry it is very
important for all the companies to be aware of all of them. With the help of market, price and
product analysis different capabilities and competencies are identified for G Mobile. Some of
them which are facilitating the effective execution of operations are discussed below:
 High level competitive advantage: G Mobile is having very high competitive advantage
in the smartphone industry which is facilitating it to carry out all the operations in
systematic manner. This competency of it helps the management to be the first choice of

customers. Apart from this, with the help of it the organisation can reach to its mission of
becoming the market leader (Lin, Yen and Wang, 2018).
 Huge demand of products in the market: The market, price and product analysis show
that demand of smart phones of G Mobile is very high. It is the major capability of the
company to reach the long-term goals such as higher profits and revenues. If the
organisation will meet the demand then it will be very easy to sustain in the industry.
Performance results: There are various efforts which are made by the companies to
perform better and better. In order to analyse their results analysis of financial statements as well
as performance is conducted. The key elements which are focused for determining performance
results of G Mobiles are as follows:
Analysis of financial statements: All the final accounts which are generated for the
purpose of recording information of finance related transactions are the financial statements.
Detailed analysis of them for G Mobile is as follows:
 Income statement: Profit and loss accounts is also known as income statement and
details regarding all the incomes and expenses during the year are recording in it. With
the help of it, it could be analysed that the company is generating profits or facing losses
since past few years. From the income statement of G Mobile, it has been analysed that in
2020 the organisation was not having any gross profits and faced a net loss of 553. In
2021, gross profit was 18646 and net loss for the same was 40851. In 2022 GP and Net
loss were decreased up to 18133 and 40113 respectively. In year 2023 the gross profit
was very high which was 280167 for the year and net loss for the same was 125667. GP
for 2024, 2025, 2026, 2027 and 2028 were 204792, 200185, 179590, 383688 and 347586
and NL for the years were 149692, 428149, 495180, 434045 and 500940 respectively
(Miller, 2016). Gross profit for 2029 was 275318 and net loss for the year was 614804.
The income statement is showing that company was not able to generate profits during
year 2020 to 2029.
 Balance sheet: The statement which is used for the purpose of keeping track record of all
the assets, liabilities and equities is known as balance sheet. It helps to analyse financial
position of the company. From the results column of simulation game balance sheet of G
Mobile was analysed. It shows that in 2020 the company was having cash of around
517984 and total liabilities and equities for the same year were 519634. In 2021 the cash
was decreased up to 437984 and total assets for the year were 485132. Cash for the year

2022 was 381488 and liabilities and equities were 441568 for this year. Total cash and
bank account balance for 2023 was around 167028 which was decreased up to 18575 in
2024. In 2025 the organisation was not having cash or bank balance. Additionally, the
balance sheet of the year is showing overdraft of 446613 for the year. The value of
overdraft was increased in 2026 up to 942369. Balance of the same for 2027, 2028 and
2029 were 1394903, 1888253 and 2499239 (MUSTAŢĂ, Trifan and HĂNŢULIE, 2016).
The analysis of balance sheet shows that the enterprise was not having sufficient funds to
carry out operations and due to this it had to take overdraft from bank. Since 2025 the
value of overdraft is increasing continuously and showing that there is lack of liquidity in
G Mobile.
 Cash flow statement: It is essential for companies to keep record of all the cash inflow
and outflow for the year so that actual availability of cash could be determined. For this
purpose, cash flow statement is generated by companies which helps to analyse actual
inflow and outflow of monetary resources during an accounting year. From the cash flow
statement of G Mobile, it has been analysed that in year 2020 the organisation was not
having incomes and expenses for the year were 1503 which shows a negative balance or
outflow of cash. Incomes for 2021 were around 83163 and expenses against them were
163163. In 2022 the entity generated income of 92880 and the expenditures for the year
were 149377. During the year 2023 inflow of cash was enhanced up to 1221283 and the
outflow of funds for the period was around 1435743. Incomes for 2024, 2025, 2026, 2027
and 2028 are 1022876, 1350841, 1243366, 1689819 and 1551537 respectively. Expenses
from year 2024 to 2028 are 1171329, 1365417, 1239366, 1685819 and 1547537
individually. For year 2029 the incomes were 1382395 and expenses were 1378395. The
cash flow is showing that since past four years the enterprise is able to meet all the
expenses and generating some cash inflow. Main reason of it is higher incomes as
compared to the expenses (Pando-Garcia, Periañez-Cañadillas and Charterina, 2016).
From the analysis of final accounts, it has been analysed that performance of company is
not very good. There are various reasons of it which could be understood with the help of
following points:
 Income statement shows net loss from year 2020 to 2029 for the company which is
resulting in no profitability for G Mobile.

 The balance sheet is reflecting decrement in cash from 2020 to 2024 which is showing
that company is not having cash to meet requirements of business operations.
 Balance sheet is also showing increment in bank overdraft since 2025 to 2029 which
means the liabilities of the enterprise are very high.
Cash flow statements shows that the entity was not able to generate cash to meet its expenses
from year 2020 to 2025.
Performance Analysis
Performance Analysis is quite crucial from the point of view of the organizations because
it helps in the analysis of the overall working pattern of the business (Hernández-Lara and
Serradell-López, 2018). It has to be done by the businesses because this will make sure that they
are going on the right track towards the achievement of sustainable success in the future time
period.
Its various aspects are as follows-
Marketing- Marketing is a crucial aspect which is required to be considered by all the
businesses. This makes sure that the products and services of the businesses reach their targeted
customers. Therefore, it is required that the firms pay the required attention on their marketing so
that they are able to generate higher profits in the future time period. Managers of G Mobile are
required to pay attention towards it so that they are able to deal effectively and efficiently with
their products. Their products must be able to put a positive impression on the customers. Thus
in this manner it forms an important part of performance analysis.
HR- HR is another crucial aspect which has to be analyzed by the businesses to make
sure that their employees are working effectively and efficiently to achieve the required goals,
objectives and targets of the company. Thus, it is required from the organizations that they
should be able to manage them in the right manner and derive the best out of them by making
them achieve their full potential. G Mobile’s managers are required to make sure that they are
doing the best so that their employees are happy and satisfied and their morale and motivation
level remains up. This is important because increase in the morale and motivation of workers
will lead to higher productivity and thus the HR managers are required to pay attention towards
it. In this manner this forms an important part of performance analysis.
Logistics- Logistics refers to detailed organization and implementation which is
performed for a specific operation in a company. This aspect is very crucial for the firms because
this leads to proper management which increases the efficiency and effectiveness. The managers
of G Mobile are required to ensure that their logistics are OK so that the required work can be
done without facing any kind of issues and problems. Thus performance analysis involves it.

Accounting- Accounting means recording, summarizing, analyzing and interpreting the
available financial information for the purpose of drawing the right conclusions and
recommendations from it (Lin, Yen and Wang, 2018). For G Mobile, it is necessary that its
accounts are maintained in a fair and transparent manner which will ensure that the company
does not faces any kind of financial problem in the future time period. Therefore it is required in
performance analysis.
Product Development- Product Development is an important aspect which should be
considered by the companies (Zulfiqar and et.al., 2019). It is so because the right products are
required to target the intended customers. Therefore for G Mobile’s managers it is necessary that
they are able to target the right customers with their products so that higher-level of performance
can be achieved by them which will lead towards more revenues. More revenues will
automatically lead towards maximization of the profits in the future time period. Thus this is an
area which should be focused upon by the companies for their performance analysis. In this
manner performance analysis should involve it.
Event Response- Event Response is also an aspect which has to be focused upon by the
companies. This is crucial because it leads to development of a right approach of dealing with
the events. Therefore for G Mobile’s managers it is essential that they should be able to deal
properly with the events so that they are able to maximize the performance of the company. Thus
this is necessary for the companies for performance analysis.
Future plans and recommendations
Future Plan 1- Future Plan 1 of G Mobile focuses upon the strategies which are required
for expanding into global markets. The company wants to expand into the markets of Japan,
Philippines, Australia and New Zealand. For this it is required to prepare a specific strategy to
deal with the requirements of expansion and should ascertain that whether it would be feasible
for it to expand or not.
Future Plan 2- Future Plan 2 of G Mobile concentrates on the innovations which it is
planning to bring in the market in its smartphones. The firm is focusing on the various types of
new features which the users nowadays want in their smartphones. For this the company has to
invest in R&D and innovation by making the required expenditures. The managers of the
organization should put their focus on the requirements of the market and after conducting the
required research they must invest the money on innovative technology. This will pay dividends
to the company in the long-run as it can manage to catch the attention of the customers who can
be attracted by identifying the unique features in the smartphones which are offered by it.
Recommendations- It is recommended for G Mobile’s managers that they should
proceed with the strategy of diversification in the international markets of Japan, Philippines,
Australia and New Zealand. This is so because by using this strategy the firm is likely to tap the
potential which is available in these markets. Therefore the right approach can be adopted by the

company for entering into these markets by doing evaluation and making judgments. This will
lead towards an increase in the overall profits. Therefore the company is likely to achieve
sustainable success in the future time period without any problems and issues.
INTRODUCTION
Business Simulation is an interactive approach which can be used for the purpose of
getting practical experience for a business (Asiri, Greasley and Bocij, 2017). The learners can
make use of its various types of methods available. This report is based on G Mobile which is a
Dutch company manufacturing mobile phones. It will focus upon the events identified in
interaction on Edumundo, review of management theories, the industrial practices and
application of these theories. Additionally, it will also make a discussion and recommend the
right approach which is required by the company in the long-run for ensuring that it achieves
sustainable growth and makes higher level of profits in the future.
PART B
Identified events
Positive situation created due to comparison of news and cultural context in the
success of the round-
G Mobile recently took part in a big event where there were other mobile companies as
well. The company took this event as an opportunity to showcase their different type of products
which they are offering to the customers. The other companies also did the same.
There were many rounds in the event (Bragge and et.al., 2017). As I work in G Mobile I
was a key member of the team during the event. I noticed that our company performed
reasonably well in different rounds and was declared the winner at last. There was a positive
situation which was created due to the company taking part in it. As we were declared winners
therefore we were given specific media attention and were part of news. Thus this gave our
company the much-needed recognition. In the cultural context too getting attention was needed
so that the people can recognize us with our brand name.
Complete reflection of modules of Edumundo-
Edumundo is a stimulation site which helps in gaining control of business and learning
new things while playing a game related to business. It helps its learners in getting the much-
needed practical knowledge which will help them in the future time period.
As I played a stimulation game at the website I understood a lot about its various types of
modules. These modules help a lot in taking the required decisions about the company